Argentina: New deadlines for declaration of currency to be invested in Real Estate

In brief

By National Law No. 27,679 ("Law"), published on 22 August 2022, new deadlines were set forth for the voluntary declaration of currency in Argentina and abroad to be invested in real estate projects in Argentina ("Regime"). The Law applies from 22 August 2022.

The Law was regulated by Decree 556/2022, published on 30 August 2022, and by General Resolution 5253/2022, published on 31 August 2022.

The Regime was set forth by National Law No. 27,613, published on 12 March 2021, which implemented an "Incentive Regime for Argentine Federal Construction and Access to Housing", aimed at promoting development or investment in real estate projects in Argentina.

The Regime established a special tax according to the following tax rates and deadlines set forth by the Law:

  1. Entered on 22 August 2022 or during the following 90 calendar days: 5%.
  2. Entered on the day following the term mentioned in a) above or during the following 90 calendar days: 10%.
  3. Entered on the day following the term mentioned in b) above or during the following 180 calendar days: 20%.

Contents

In focus

By the Law, published on 22 August 2022, new deadlines have been set forth for the Regime. The Law applies from 22 August 2022. 
The Law was regulated by Decree 556/2022, published on 30 August 2022, and by General Resolution 5253/2022, published on 31 August 2022.

The Regime was set forth by National Law No. 27,613, published on 12 March 2021, which implemented an "Incentive Regime for Argentine Federal Construction and Access to Housing",  aimed at promoting development or investment in real estate projects in Argentina.

The Regime contemplates tax benefits for real estate projects that consist of new private construction works that have begun since 12 March 2021 (constructions, extensions and installations, among others) that, according to the building codes or similar provisions, are subject to authorization or approval by the competent authority.

In relation to this, the Regime clarifies that investments in real estate projects, either directly or through third parties, are the ones made, among others, through the following:

  1. The subscription of preliminary sales contracts or other similar commitments.
  2. The granting of the deeds transferring title.
  3. Contributions to "fideicomisos" constituted under the terms of the National Civil and Commercial Code and the subscription, in the primary market, of Common Investment Funds included in Law No. 24,083 and/or financial "fideicomisos", authorized by the National Securities Commission, whose purpose is to finance construction and real estate developments.

1. Included subjects and funds

Individuals, undivided estates, legal entities and other subjects residing in Argentina may voluntarily declare the possession of national and/or foreign currency in the country and abroad from 22 August 2022 until 360 calendar days from this date. 

All declared funds must be assigned to the development or investment in real estate projects before 31 December 2024, inclusive.

2. Special tax

As a reminder, the Regime established a special tax according to the following tax rates and deadlines set forth by the Law:

  1. Entered on 22 August 2022 or during the following 90 calendar days: 5%.
  2. Entered on the day following the term mentioned in a) above or during the following 90 calendar days: 10%.
  3. Entered on the day following the term mentioned in b) above or during the following 180 calendar days: 20%.

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